With Donald Trump set to return to the White House in January, UK businesses face a mix of opportunities and challenges when trading with the US.
His policies are expected to prioritise an ‘America First’ agenda, but businesses that adapt and prepare could benefit from emerging prospects.
Will a UK-US trade deal happen?
There is growing speculation about a potential UK-US trade deal, and Trump’s second term could bring it closer to reality.
His focus on protectionist policies might create hurdles, but his reputation as a dealmaker could open new opportunities for UK exporters in sectors like finance, technology, and manufacturing.
A trade agreement could mean better access to the US market, but it is unlikely to be straightforward.
Businesses will need to balance the demands of complying with EU standards while adjusting to US requirements.
Careful preparation will be key for companies operating on both sides of the Atlantic.
Understanding US regulations
Expanding into the US means getting to grips with its complex regulatory system.
Laws vary from state to state, and businesses must ensure compliance with local product standards, tax laws, and employment rules.
Getting this wrong can lead to expensive penalties, so investing time and effort into understanding the rules is crucial.
Preparing for protectionist policies
Trump’s first term brought tariffs and trade barriers aimed at protecting US industries, and these measures are expected to continue.
UK exporters may face increased costs, making it essential to review supply chains and pricing strategies.
Businesses that take steps to address these challenges now will be in a stronger position to compete.
Managing currency risks
Economic changes under Trump’s leadership could cause currency fluctuations, creating uncertainty for businesses trading with the US.
Using tools like hedging strategies can help reduce risks and ensure greater financial stability in an unpredictable environment.
Building on the UK’s strengths
The UK’s strong reputation for quality and high standards remains an advantage when forming partnerships in the US.
Businesses should emphasise their reliability and ethical practices to stand out in the market and strengthen relationships with US clients and partners.
Collaborating for success
For small and medium-sized enterprises (SMEs), entering the US market can feel overwhelming.
Partnering with local businesses or working within established trade networks can provide valuable insights and reduce the risks associated with international expansion.
These collaborations can smooth the process and help you make the most of new opportunities.
Balancing EU and US markets
Expanding into the US does not mean ignoring the European market.
As Sir Keir Starmer’s Government works to rebuild relationships with Europe post-Brexit, maintaining compliance with EU standards will be important for avoiding disruptions in trade while exploring new options in the US.
Plan for what’s next
The return of Trump to the White House will bring changes to the global trade landscape, but UK businesses that plan ahead can adapt and uncover new opportunities.
